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Opening Your Self Directed Account

When you are ready to open your Self Directed IRA the thing to remember is: Not all Self Directed IRA Custodians are created equal.

When opening a Self Directed IRA means that you will have to use a special type of IRA Custodian. Each Custodian in the field of Self Directed accounts, has a different amount of experience, services, and fee schedules. Ultimately, you should choose a custodian that you feel comfortable with and have done research on. As much as we’d like you to choose us, Horizon Trust, the choice is ultimately yours.

Choose the Custodian that has the most to offer to YOU!

Step 1: Select a Self Directed IRA custodian

In most cases, your current IRA or 401K provider does not allow for a Self Directed IRA option. That means that in order to have a Self Directed IRA, you will need to select a new IRA provider that does, in fact, offer the Self Directed IRA.

Step 2: Liquidate your current account

Once you have a Custodian picked out, the next step will be to liquidate your current IRA or 401k. This generally means to remove the money in the account from being invested in any active investments like a mutual fund or any stocks. This usually requires some paperwork to be filled out and a phone call to be made to your current custodian. This is one of the benefits of working with us at custodian like Horizon Trust. Not only do we help you fill out the paperwork correctly (which saves you a ton of time and headache) we will also make the phone call to the current custodian with you to ensure all questions are answered and that the liquidation takes place correctly. The liquidation process can take about an hour or a couple days depending on what paperwork has to be returned and what calls need to be made.

Step 3: Open your Self Directed IRA

Well, step 2 and 3 actually happen at about the same time. Once you have initiated contact with a Self Directed IRA custodian and begin the liquidation process you will then start setting up your new Self Directed IRA. Generally there is an account set up fee and an annual maintenance fee charged when you open the account. Most Custodians allow you to pay that fee with the money from the IRA that you are transferring over or from a credit card. The advantage to putting the fee on the card is that you keep more money in your Self Directed IRA and that fee is tax deductible. Once your Self Directed IRA is open there is usually a waiting period for your funds to completely transfer over which depends on your current custodian. Every custodian is a little different and generally transfer periods could last 7 to 45 days.

Step 4: Invest

Once your account is set up and the funds have arrived then there is no time to waste, start earning interest!